EURUSD Analysis – Oct 4, 2008

EURUSD breaks below 1.3881 previous low support and reaches as low as 1.3702 level. Deeper decline is now in favor, and target could be seen to 1.3000-1.3200 area. Initial resistance is now located at 1.3980 and followed by the down trend line from 1.6038 to 1.4867, as long as 1.3980 resistance holds, we’d expect down trend to continue.

For long term analysis, EURUSD breaks below 1.3881 and is back to long term bearish movement. Further fall towards 1.3000 to reach next cycle bottom on weekly chart is now in favor.

eurusd daily chart

eurusd weekly chart